MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic. In addition, MNB received proposals on a consultation initiated, at the end of March 2020, with environmental specialists, non-governmental organizations, and institutions, on the ecologically sustainable recovery of the economy after the COVID-19 pandemic. The proposals indicate that wide-ranging opportunities exist for economic recovery while observing green principles. MNB will assess these proposals to develop measures and proposals supporting green investment.
In the statement on loan moratorium, MNB has specified that, due to the moratorium on payment of loans, the loan installment will not increase after the moratorium expires. The amount of the first installment and interest installment after January 01, 2021 cannot be higher than the installment that the contractor would have had to pay under the contract if there had been no payment moratorium. To ensure this, the term of the given loan can be increased, though there may be a case where a particular customer does not want the latter. In this case, on its own initiative, it will be possible to find a suitable solution together with the lender at a later stage (for example, to voluntarily undertake a higher monthly repayment for a shorter term).
Keywords: Europe, Hungary, Banking, COVID-19, Loan Moratorium, Q&A, ESG, Climate Change Risk, Green Economic Recovery, Green Program, Credit Risk, MNB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEIOPA Risk Assessment Shows Increase in Credit and Market Risks
FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."
FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.
FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.
EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.